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The rate of return on the common stock of Luna Lights is expected to be 11.5 percent in a boom economy and 4.5 percent in
The rate of return on the common stock of Luna Lights is expected to be 11.5 percent in a boom economy and 4.5 percent in a normal economy. The probability of a boom is 23 percent. What is the standard deviation of the returns on this common stock?
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2.47%
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5.63%
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8.68%
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2.95%
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6.11%
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